AUB nets P8.3 billion in 2023

Asia United Bank Corp. (AUB) saw a record-high profit in the past year as its loan growth drove its consolidated net income up by 32%, as the lender said it had to remain agile to sustain its performance moving forward.

In a regulatory filing, AUB said its consolidated net income climbed to P8.3 billion from P6.3 billion in 2022, while its net interest margin widened by 17% to P15 billion. Return on equity stood at 18.6% and return on assets improved to 2.38%.

“We attribute this vastly improved performance to our robust loan growth, more profitable net interest margin, continuously improving credit quality, and higher operating efficiency,” AUB President Manuel Gomez said.

The non-performing loan (NPL) ratio was recorded at 0.58%, leading the company to reduce its loan provisions to P1.2 billion, 27% down from the previous year. Operating expenses climbed to P6.5 billion.

AUB said its total assets increased by 4% to P355.1 billion, while total deposits increased to P292 billion, with the majority made of low-cost CASA deposits.

“With our stronger performance in 2023, we expect to solidify our lead among the country’s top ten listed universal banks in terms of compounded annual growth rate on key indicators since AUB was listed on the bourse in 2013,” Gomez said.

“However, with interest rates expected to remain elevated this year, and global shocks a continuing concern, we have to remain agile to sustain our performance,” he added.

The Monetary Board of the central bank had already raised key policy rates by 450 basis points since May 2022 in a bid to tame inflation, with the benchmark target reverse repurchase (RRP) rate currently at a 16-year high of 6.5%. — DVM, GMA Integrated News